The Australian Competition and Consumer Commission (ACCC) finally gave its go signal for the five-year partnership sued for by Virgin Blue Holdings Ltd and Abu Dhabi-based Etihad Airways, paving the way for the two airlines to closely cooperate in providing flight services to their networks.

In a statement issued on Thursday, ACCC chair Graeme Samuel said that Virgin Blue and Etihad can commence working on measures to collaborate on their respective areas' pricing and service scheduling, which will be reconciled to maximise the two companies' revenue prospects.

The newly-approved alliance, however, does not carry any mandates for revenue sharing, said the ACCC chair.

In approving the Virgin Blue-Etihad alliance, Samuel is optimistic that further growth will be seen by the airline industry.

His statement stressed that "the ACCC considers that the alliance is likely to promote competition and result in new international services, in particular between Australia and Abu Dhabi with onward connections to Europe."

Also, the competition watchdog is confident that the partnership between the two carriers will not harm the sector's competition environment as both Virgin Blue and Etihad are currently not engaged in any head-on service routes rivalry.

The ACCC said that with the official decision already out, Virgin Blue and Etihad will be protected from any court suits that may arise in relation to the provisions of the Competition and Consumer Act of 2010.

Samuel said that his agency has been empowered to issue such authorisation especially in cases where public welfare is deemed to gain considerable benefits as against to detrimental impacts.